Labour's housing boost to kick-start the economy is what Hull needs

Hull North MP Diana Johnson has welcomed plans announced by the Shadow Chancellor to get the economy moving by building 100,000 affordable new homes.

Diana Johnson said: "The Coalition's 60% cut to social housing investment was part of the reason for the home-grown double dip recession. In Hull North the Government cancelled a £160m housing scheme to regenerate the Orchard Park Estate.

"Labour's plan to invest £3bn of the 4G windfall to build 100,000 more affordable homes is just what we need in Hull to boost the construction industry and get the economy moving. The Coalition needs to take this action now. Without this growth we'll not get people off welfare and into work, boost growth or cut the deficit."

Ed Balls MP, Labour's Shadow Chancellor, in his keynote speech to The Labour Party Conference today, set out the action Labour would take now to kick-start the economy, create jobs and so get the deficit down.

Building on Labour's five point plan for jobs and growth announced at last year's conference, Ed Balls called for 100,000 more affordable homes to be built. This would help to kick-start the economy and create hundreds of thousands of jobs, alongside a two-year stamp duty holiday for all first time buyers purchasing properties up to £250,000.

He said that the plan should be funded using the £3 billion to £4 billion expected to be raised from the forthcoming auction of the 4G mobile phone spectrum. Using the lower estimate of £3 billion would allow 100,000 affordable homes a mix of shared ownership, affordable rent and social rent to be built at a cost of £2.5 billion and the two-year stamp duty holiday at a cost of around £500m.

Ed Balls also warned that with David Cameron and George Osborne's failing plan leading to no growth, high unemployment and rising borrowing to pay for costs of economic failure, the next Labour government will face difficult decisions and will hold a zero-based spending review in the first year of government.